Richmond County, GA Chapter 11 and 13

Richmond County, GA Chapter 11 and 13

A debtor under Chapter 11 in Richmond County, GA can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to allow the debtor to continue his business operation. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the filing of the bankruptcy case. Under a typical reorganization agreement, the debtor will restructure the debts. Such a plan will generally include the repayment of loans secured by real estate to be paid over an extended period of time. Intermediate term loans are generally proposed to be paid over the remaining useful life of the collateral, which is generally five to ten years.

Chapter 13 bankruptcy filing in Richmond County, GA permits the individual debtor to pay down his debts, either the entire amount or a part of it, with the help of a payment plan under the supervision of the court. Debtors filing under this chapter can keep their possessions with them while they follow the plan or after they have cleared the required portion of debt. It involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors.

A chapter 13 bankruptcy is also called a wage earner's plan. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to clear their debts but are unable to do so in a timely way. The purpose of Chapter 13 is to enable financially distressed individual debtors to design and work out a repayment plan under which the debts are paid off over an extended period of time usually three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.

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